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BANGKOK (Reuters) - Thailand's new ultra-luxurious Iconsiam shopping complex opens its doors on Saturday, shrugging off a decline in tourist arrivals and political uncertainty ahead of next year's elections.

"I wanted to build something that would tell the million stories of 'Thainess'," says Chadatip Chutrakul, chief executive of Siam Piwat, the firm behind Iconsiam, a half-million-square meter (sqm) complex sits on the banks of Bangkok's Chao Praya River.

The retail sector is a rare bright spot in Thailand where the economy lags regional peers, even while growing at 4.6 percent.

Bangkok currently has 7.5 million sqm of retail space with another million in planned, nearly double what similar cities have lined up.

This breakneck expansion risks creating a supply glut such as seen in Kuala Lumpur and when foot traffic through malls doesn't lead to sales, Thai retailers and developers are already working together to boost spending.

Pomelo is looking into partnerships with stores to tap into customer loyalty programs.

There must be data-sharing on footfall and spending between landlords and tenants, which will require big investments in data analytics, says James Pitchon, Executive Director of real estate consulting firm CBRE in Bangkok, noting that "retail's not dead, but it's very complicated".

One Bangkok, a venture of Thai billionaire Charoen Sirivadhanabhakdi's Fraser Property and TCC Asset's $3.5 billion, will devote half of its 1.83 million sqm development to offices, a quarter for retail, and the remainder for hotels and attractions.

"We already have a captive population right there," Su Lin Soon, CEO (Development) of One Bangkok told Reuters in an interview.

Infrastructure investments and a government policy that draws in foreign investors will also benefit the project, which is expected to complete its first phase in 2022, Soon adds.

LA Staples-owner AEG and the Mall Group also announced $300 million in ventures including a 16,000 seat entertainment and retail complex.

The challenge to Thailand's retail success is keeping shopping centre visits engaging and fresh, says CBRE's Pitchon."You need a reason to go...and it has to be a unique experience. Is it instagram-able?"